Step 1

In a large saucepan over medium-low heat, melt the butter. Whisk in the flour and cook for 2 minutes or until lumpy.

Step 2

Whisk in the milk and bring to a simmer (small bubbles). Continue to cook until slightly thickened.

Step 3

Remove the pan from the heat source. Add the shredded monterey jack and pepper jack cheeses to the milk mixture and stir to melt.

Step 4

Add the diced chiles, red pepper flakes, chili powder, minced onion, garlic powder, and salt. Mix one final time, garnish as desired, and serve warm.